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,

VALUE ADDED TAX (A~~NPME,NT) ACT" 2O(t7

2007 ACT No., 12

AN ACTTO AMEND TIlE YALUEAbDED'TAX ACT No, 102, 1993 ';AND FOR RELATED MATTERS

l A 157

1/: .\i'-[16th Day of April, 2007] Commence-

, 11" men!.

ENACTED by the National Assembly ofthe Fed~ral Republic OfNig~fia-, , II" . , .

1.The Value Added Tax Act (in this Act referred to as "the Principal Act")is amended as set out in this Act.

i"1

2.'StIbS1itutefoT the words "VA1 Officeh the wordS ''1'ttx'Office'' whereverthey occur in the Principal AC,t :.

3.Substitute for section 4of the Principal Act a new section "4"-"Rate oftax 4. The tax sha\l be computed at the rate of'S per cent on the value

of all gMd§ and services as determined, undersections 5'at1d'6QfthisAct, except, that

. iOQ~S,and serv!c;¥,S.listedunder Part III of the.FirstScheduleto this Act shall betaxed at zero rate."

;,'! 4. ~~~titllt~fqr,*e ~ord "~ill'(.t~e )rorp~"th~person" insection 10 (1) ofthe Principal Act. ,,' 'k i ••"

. 5"Se(;tion 10 Aof the lrinci~1 Act is.l¥Tl~[ldedby-

(a) inserting immediately after the existing subsection (1), the following newsubse,~.tiqr::(~)"--r- .. ",' 0" r

"(2) The Service may, by notice, determine and direct the companiesoperating,ip the(i)~,~and.gas.sector which.shall defluctVAT at source andremit same to the Service" ; and . . .

(b) renumbering the existing subsection "(7)" as subsection "(3 )".. ..• •. ' . ' " " '.' .' I' ,f', :,:,;::"

6. Insert the fo\lowing new section \lA immediately after the existing sectionII of the Principal Act--; "

"Tax invoice II A (I) A taxable person who makes a taxable supply shall, inrespect of that supply, furnish the purchaser with a taxinvoice containing, interalia, the foUowing.--- '•. i

: . ,;. " . ,'" " ' "I! ~,', ;(a) tax payers identification number;'

(b) name and address;j'I"'l'

(c) VAT registration number; , ., (d) th~ date 'Of ~uppiy ; "

( e) name of purchaser or client; ;i. .;.

J)',

;)

,Ij",

Amendmentof Act No.102 of 1993.

Generalamendments.

r '

Substitutionfor section 4.

Amendmentof section 10.

Amendmentof sectionlOA.

A 158 2007 No. 12 Valued Added Tax (Amendment) Act

Amendmentor section 12.

Deletion ofsection 13(3).

(j) gross amount of transaction; and

(g) tax charged and rate applied ..

(2) A tax invoice shall be issued on supply whether or not payment is made atthe time of supply."

7. Section 12 of the Principal Act is amended-

(a) in subsection (I ), by substituting for the figure and word "30th day" for thefigure and word "21 st day" ;

. (b) by inserting imediately after subsection (2), the following new subsection"(3)" ~

"(3) In this regard, any payment made to duly authorised government agentsshall be deemed to have been made to the Federal Inland Revenue Service."

8. Delete section 13 (3) ofthe Principal Act.

Amendment . 9. Substitute for the figure" 16", the figure" 15" in section 15 of the Principalor section 15. Act.

Amendmento I' section 16.

10. (I) Substitute for section" 16 (2)" and (3) of the Principal Act, a new section16(2)and(3)-

""(2) A taxable person who is aggrieved by an assessment made on the personmay file an objection to the Federal Inland Revenue Service.

(3) An appeal before the Federal hiland Revenue Service shall be determinedwithin 30 days."

(2) Insert new section "16 (4)" and "(5)" immediately after the new section 16"(2)" and ."(3)"-

(4)Appeal from the decisions of the Fed~rallnland Revenue Service shall bemade to the Tax Appeal Tribunal.

(5) An appeal from the Tax Appeal Tribunal shall be made to the Federal HighCourt."

Substitution II. Substitute for section 36 of the Principal Act a new section "36"-/01' section '36.

Distribution "36. Notwithstanding any formula that may be prescribed by any other law,or revenue. the revenue accruing by virture of theoperation of this Act shall be distributed as

follows- . . . .

(a) I~% to the Federal Government;.

(b) 50% to the State Governments and the Federal Capital Territory Abuja ; and

(c) 35% to the Local Governments.

Valued Added Tax (Amendment) Act 2007 No. 12 AI59~. f . t~

Pr6vl<:te<tll'latttre prmctpteof derivation ofrrotlesrthan W%shllHbe-reflected"-in the-distribution ofih~allocatioBdfOO11gSt States aod liocalGpvel;llfl1ents al1specifiedin sulHJaraglaphs (b) and (c) of-this Section."" "J."

12. Insert the interpretation of the foltowing accordingly inse6tio~'42 ofthe' ftimendmentPrincipal Act- of section 42.

"exporteded service" .means <Serviceperformed by a Nigerian resident or aNigerian company toa person outside Nigeria;

"imported service" means service rendered in Nigeria by a non-resident personto a person inside Nigeria;

"taxable person" includes an individual or body of individuals, family,corporations sole, trustee or executor or a persen:who c~i~s out in a place anecono~~~ ilctj~it>:"a g~~son explojtin!?ita~gib~e;~~ iNan~i~leproperty for thepu~oseof obtainin g income there fromby way 0,ftradeot'buslhess or a persoti"orlige"by ofgovernmentacting in that capacity ;" ~. 'I! .,'" '.. .

13. The First.Schedule to the Principal Act is amended-

(a) by substituting for paragraph 7, the following new paragraph "7"

"7. Plant, machinery and goods imported for use in the export processing zoneor free trade zone :

Provided that 100 per cent production of such company is for expert otherwisetax shalt accrue proportionately on the profits of the company" ; and

(b) inserting a new "Part Ill" as foltows-

"Part III-zero rate goods and services

I. Non-oil exports.

2. Goods and services purchased by diplomats.

3. Goods purchased for use in humanitarian donor funded projects."

'humanitarian donor funded project' includes projects undertaken by Non-Governmental Organizations and Religious and Social Clubs or Societies recognizedby law whose activity is not for profit and in the public interest."

14. Appeals shall be as in the Federal Inland Revenue Service Act.

15. This Act may be cited as the Value Added Tax (Amendment) Act, 2007.

. Amendmentof FirstSchedule.

Appeals.

Citation.

A 160 2007 No. 12 Valued Added Tax (Amendment) Act

I Certify, in accordance with Section 2 (1) of the Acts Authentification Act,Cap. 4, Laws of the Federation of Nigeria 1990, that this is a true copy of the Billpassed by both Houses of the National Assembly,

NASIRU IBRAHIM ARAB,

Clerk to.the National Asembly16th Day of April. 2007.

EXI'LANATORY MEMORANDUM: " ',,'j

ThisActamends the ValueAdded TaxNo. 102,J 993 and, among other things,makes it more responsive to the tax reform policies of the Federal Government andenhance its implementation and effectiveness.

,',

, '

u

- ~'-l+ .,...•••.••~~'"jlh'·· ..' •.'"II·'·."I~'_".,II'.,

SCHEl>lILE TO VALUE ADDED TAX (AMENDMENT) BILL. 2007

(I) (2, (.1) (-I) ( 5)Short title fI( I.ollg titl« o( lilt' SI/lIIII/(IiT ,,( till' 0011' I'lls.'etll,,· Dau: IhlSsl'd hi·

the Hill Hill ('III/I< 'II Is ot th« Bill thcScnat« tlu: tloir«: lItRel're.lelllillil·l's

Value Added Tax An Act to amend the This Bill secks ro umcnd the Value(Amendment) Bill. Value Addcd Ta\ :\0. 102. Added Tax Act. and among other 20th February. 2007. 21 st February, 2007.2007, 1993 : and for related things. make it more responsive to

the tax reform policies of the Federal.

matters.Government and enhance itsimplementation and effectiveness.

I certify that this Bill hastrue and correct decision 0 fFederation of Nigeria. 1990.

been carefully compared by me with the decision reached by the National Assembly and found by me to hethe Houses and is in accordance with the provisions of the Acts Authentication Act Cap, -I. Laws {)f the

I Assnxr,

N.\sIHI· IIlH,\IfIM AH,\U

Clerk 10 tlu: National Assembty161h Dav ot April. 2007

CIIIIT OI.I.SH'I.\ OH.\Sx,JO, (iC!·H

President o( the Federal Republic of' Nigeria161h Dav or April, 2007